CBI Registers Case Into Rs 397 Crore TNPDCL Transformer Purchase Scam In Chennai
The Central Bureau of Investigation (CBI) has registered a criminal case to probe alleged irregularities in the purchase of distribution transformers by the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) in Chennai. The investigation, which targets procurement activities that reportedly caused a Rs 397 crore loss to the state exchequer, was launched following a directive from the Madras High Court.
The anti-corruption branch of the CBI in Chennai booked the officials who served as members of the tender inviting authority and the tender scrutiny committee during the period of the alleged offenses. The procurement occurred under the tenure of the former electricity minister, DMK's V Senthil Balaji, when the utility operated under its previous name, Tangedco.
The registration of the case follows a legal battle initiated by the anti-corruption non-governmental organisation Arappor Iyakkam and the advocate wing of the AIADMK. In 2023, Arappor Iyakkam raised allegations of corruption concerning ten separate tenders floated by the power utility between 2021 and 2023. These tenders aimed to procure over 45,000 distribution transformers, ranging in capacity from 25 KVA to 500 KVA, at a total cost of Rs 1,182 crore.
According to the complaints, more than 25 bidders submitted identical price quotes for the contracts, a practice that directly contravened the provisions of the Tender Transparency Act. Furthermore, the complaints alleged that 500 KVA transformers were purchased at an inflated price of Rs 12.50 lakh per unit. This price was at least Rs 5 lakh higher than the market rate during that period.
Arappor Iyakkam initially approached the Madras High Court after the state's Directorate of Vigilance and Anti-Corruption (DVAC) did not take action on its complaints. In April, a division bench of the High Court, consisting of Chief Justice SA Dharmadhikari and Justice G Arul Murugan, ordered the CBI to conduct an investigation.
In response to the High Court's order, TNPDCL Chief Financial Controller V Kasi approached the Supreme Court of India to challenge the decision. The apex court dismissed the plea and refused to block the investigation. TNPDCL officials have since stated that they have transferred all relevant documents to the CBI.
